Alcatel wins Euro 12 million rail signaling contract for a section of the North-Northwest high-speed corridor in Spain

Paris, July 5, 2006 - Alcatel (Paris: CGEP.PA and NYSE: ALA) today announced that it has been awarded a contract to install safety and communications systems for the railway bypass around Burgos, Spain, a section of the North-Northwest high-speed corridor. The Euro 12.4 million project awarded by the Spanish Ministry of Transport will be implemented within the next 24 months.

With this new award, the complete Avila-Valladolid-Burgos-Vitoria line will be equipped with the signaling technology of Alcatel. For this project, Alcatel will deploy electronic interlocking solutions (Alcatel 6151 LockTrac/INTERSIG L905 E) including new video graphic systems for Burgos station and for Villafría’s junction, as well as the associated two-way automatic block systems.

Additionally, Alcatel will install track circuits, new light signals, punctual ATP system, electro-hydraulic point machines Alcatel 6341 FieldTrac/L700H and communications equipment. Alcatel will also install a new high voltage line for power supply, and will undertake the associated civil works.

This project reinforces Alcatel presence in the high-speed lines in Spain, adding this success to the Madrid-Sevilla, Madrid-Saragossa-Lerida, Lerida-Barcelona, Madrid-Segovia-Valladolid and Cordoba-Malaga lines, and the Atlantic Axis.

About Alcatel’s Railway Solutions
To meet the challenge of increased mobility, Alcatel offers a host of advanced railway solutions that ensure safe, reliable and comfortable transportation of passengers and freight through the network. Drawing on wide international experience in all aspects of transport automation and network integration and services, Alcatel is a leading worldwide supplier for signaling - train control, train routing, control centers - and integrated communications solutions to carry and distribute voice, data and video to and from all sites of urban and main line rail. Whether enhancing, renewing or building new lines, Alcatel is an ideal partner to address the operational needs of main line and urban rail operators.

About Alcatel
Alcatel provides communications solutions to telecommunication carriers, Internet service providers and enterprises for delivery of voice, data and video applications to their customers or employees. Alcatel brings its leading position in fixed and mobile broadband networks, applications and services, to help its partners and customers build a user-centric broadband world. With sales of EURO 13.1 billion and 58,000 employees in 2005, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com

Contact Information

Mireille Holopherne

Corporate Media Relations

Alcatel

Contact via E-mail